1.
1
WHAT IS A
BUSINESS?
Mr. Ivan Urdiales V.
1.1 WHAT IS A
BUSINESS?
www.reallygreatsite.com
1.1 WHAT IS A
BUSINESS?
A business aims to meet the needs
and wants of inviduals or organizations through any of the
following activities:
Producing crops or extracting raw materiales
from the earth
Creating a product
Providing a service
PRODUCTION
PROCESS
1.1 NATURE OF
BUSINESS
Businesses input resources and process them to
generate the desired output (final product).
Many activities or organizations operate under various
business principles. Ex: Charities and religious organizations.
1.1 RESOURCE E
INPUTS
Human - people required to
make product.
Ex: Employees, personnel, workers, labour, staff, etc.
Physical - materials, machinery, land space.
Financial - cash or sources finance
Enteprise - Business idea and determination to turn
that idea into a functioning and, thriving business.
1.1 PRODUCTION E
PROCESSES
Capital intensive processes use a large
proportion of land or machinery relative to other
inputs.
Labour intensive processes use a large proportion of
of labour relative to other inputs, especially in relation to
land or machinery.
1.1 PRODUCT E
OUTPUTS
Goods - tangible products
Services - intagible products
1.1 BUSINESSE
FUNCTIONS
Human resources (HR)
Marketing
Finance and accounts
Operations Management or production
1.1 BUSINESS
E
FUNCTIONS
HUMAN RESOURCESE
Ensuring that appropiate people are
employed to make the product.
HR must:
Recruit people
Training
Dismissal (Firing them)
Determine appropiate compensatiom
FINANCE AND E
ACCOUNTS
Ensuring that appropiate funds are
avaliable to make the product.
Finance must:
Forecast requirements
Keep accurate records
Procure financial resources from providers (suppliers)
Ensure proper payments for good and services
MARKETING E
Ensuring that business offers a product
that is desired by a sufficient number of people or
business for profitable operations.
MKT must:
Implement strategies to promote, price, package and
distribute the product.
OPERATIONS E
PRODUCTION
Ensuring that appropiate processes are used in order to
make a product, that is of the desired quality.
Operations must:
Control quality and flow of stock
Dertemine appropiate methods of production
Look ways to produce more efficiently
SECTORS OF THE
ECONOMY
SECTORS OF THE
ECONOMY
SECTORS OF THE E
ECONOMY
The 4 sectors are typically linked to the production chain
or chain of production. It is the steps through the different
sectors that have to occur in proder to turn raw materials
into a con sumer good that is marketed.
SECTORS OF THE
E
ECONOMY
PRIMARY SECTOR E
The part of the economy engaged in extraction (such as of
minerals or oil) or production of raw materials.
Examples:
Farming, fishing, forestry, raising livestock and quarrying
SECONDARY E
SECTOR
The part of economy engaged in the production of finished
goods.
In the SS raw materiales are processed, usually by
manufacturing.
Goods from SS cand be consumer durables, non durables
and capital goods.
Ex: Manufacturing sector of the economy
SECONDARY
E
SECTOR
SECONDARY
E
SECTOR
SECONDARY
E
SECTOR
SECTORS OF THE
ECONOMY
TERTIARY E
SECTOR
Services, sometimes using manufactured products.
Examples:
Financial, leisure, education, transport, security.
Banking, insurance, transportation, retaile, wholesale and
consultancy.
QUATERNARY E
SECTOR
Services focused on knowledge.
Production, processing and transmission of ideas.
Examples:
e-services, IT, the media, web based services
SECTORAL
E
CHANGE
SECTORAL
E
CHANGE
E
WHAT ARE WE
E
GETTING BETTER AT?
E
1. Define the term labour.
2. Define the term Operations.
REASONS FOR E
STARTING UP A BUSINESS
Rewards - Working for someone else means that you do not
get to keep all the rewards yourself.
Independence - Working for yourself means that you are your
own boss and not following some else's rules.
Necessity - Businesses are started by individuals who were
redundant at work or couldn't find a job.
REASONS FOR E
STARTING UP A BUSINESS
Challenge - Some people just want to see whether they can
make it themselves.
Interest - Interesting businesses are set up by people with a
passion for something who want to just keep doing what they
enjoy doing.
Finding a gap - Business may see or find and untapped
opportunity.
REASONS FOR E
STARTING UP A BUSINESS
Sharing an idea - Selling the idea to others.
THE PROCESS OFE
STARTING UP A BUSINESS
1. Organizing the basics
2. Refining the business idea through market research
3. Planning the business
4. Establishing legal requirements
5. Raising the finance
6. Testing the market
CHALLENGES THAT A NEW
E
BUSINESS MAY FACE
CHALLENGES THAT A NEW
E
BUSINESS MAY FACE
